Judge Limits Scope of Suit By A.M.D. Against Intel

Published: September 27, 2006

Intel won a ruling yesterday that limits an antitrust lawsuit by Advanced Micro Devices to claims over United States sales.

Judge Joseph J. Farnan Jr. of United States District Court in Delaware granted Intel's motion to exclude Advanced Micro's foreign commerce claims for lack of jurisdiction, according to an electronic court filing.

Advanced Micro sued Intel last year, claiming that its larger rival had built up a dominant share of the worldwide market for microprocessors by stifling competition and trying to coerce customers into not buying Advanced Micro products.

Advanced Micro is seeking damages based mostly on the sales of its German-made microprocessors in foreign countries where United States courts have no jurisdiction, Intel said in a brief filed May 3.

''Courts have recognized that reduced income flowing from a foreign subsidiary to a domestic parent is not a direct domestic effect or injury,'' Judge Farnan wrote yesterday.

Representatives of the two companies will meet the judge for a trial-planning meeting today.

Chuck Mulloy, a spokesman for Intel, said: ''We are grateful the judge appears to have agreed with our legal analysis and arguments.'' He added: ''We will wait until after the meeting with the judge before further comment.''

Michael Silverman, a spokesman for Advanced Micro, said: ''We have just received the ruling, and we are studying it. Meanwhile, this case goes on and the global antitrust regulatory scrutiny of Intel's abusive conduct steams ahead.''